SHANGHAI, Sept 7: The watchdog China Securities Regulatory Commission will require listing companies to disclose any subsidies or tax breaks they receive so that their financial statements accurately reflect their profits, state media said on Saturday.

The official China Securities Journal quoted unnamed CSRC sources as saying any company planning to list on China’s stock exchanges would have to report tax breaks, tax rebates, and government subsidies or fund allocations in its IPO prospectus.

Companies for whom government subsidies account for more than 20 per cent of net profit for a given accounting period would be required to give an explanation of how subsidy income helped profits, it said.—Reuters